Q: Is it acceptable to use the title ‘director’ when operating as a sole trader?
Aug 18 2005
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Choosing your job title very much depends on your own personal view, and on how comfortable you feel being referred to by a certain title.
However, as Nigel Lander, an adviser with Business Link for London explains, as a sole trader, it might pay to avoid titles such as ‘chief executive’ as this could signal that you are inflating your importance/business.
“I don’t normally see anything signed as chairperson. Most people tend to use owner or managing director. In a small company, the title ‘chairman’ will not have much kudos compared to how it will be perceived in a major plc,” he explains.
This is a view echoed by Stephen Pegge, head of external communications for Lloyds TSB. He says that sole traders calling themselves a chief executive might give a bit of a negative impression to people, but he also emphasises that there is no evidence that this is a particular issue
According to Pegge, the term ‘director’ is now much more commonly used for sole traders, and gives a sense of status without being over-inflated.
“To my ears, the title director strikes the right balance between the title of someone who works for a business and a message of authority without sounding self-important,” he adds.
The use of job titles does not have much bearing in relation to the impression this gives of your business. For example, if you are seeking funding, both Lander and Pegge agree that it makes no difference what you job title you use – what’s more important is the business proposition rather than the names people use.
As a sole trader, you will own your business, but you do not necessarily have to make this clear. If you want to ‘disguise’ this fact for any particular reason, then, says Lander, it makes sense to use the terms ‘managing director’ or ‘director’ instead of ‘owner’ or ‘proprietor’.
“You might want to call yourself director rather than let the whole universe know you are the owner,” suggests Lander.
If you are operating a limited company, then your job titles will need to be much more specific, as all limited companies must have a director. A limited company is a separate legal identity, owned by its shareholders and run by the director or directors, so in most cases the owner/manager would adopt that title.
If you are setting up a partnership, the term ‘partner’ or ‘associate partner’ might be most appropriate.
Pegge believes that there is now a growing trend for more and more owner/managers to set up as limited companies and to adopt the title of director.
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